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Off-site Renewable Energy Solutions

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More than four out of five global customers believe corporations have a duty to help improve and protect the environment. And though many companies have plans in place to address sustainability in their operations--many within the next year--some have been stymied by an inability to make environmentally friendly energy production fit their sites or operations.

MP2 Energy, as a wholly owned subsidiary of Shell Energy North America (SENA), enhances the purchase of renewable energy through new product offerings. We integrate offsite renewable energy purchases directly through a Customer’s retail power supply contract. This provides for a simple and effective solution that allows for increased sustainability metrics such as identifying the source of renewable energy. We have a large portfolio of renewable assets that allow customers to achieve their sustainability objectives without having to enter directly into complex and burdensome direct offtake agreements.

As more businesses are committing to renewable energy goals, the realization is that many options such as Virtual Power Purchase Agreements are laden with increased risk that don’t bring all of the pieces together.

MP2 Renewable Energy Plans

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Certified
  • National or Regional environmental attributes (Renewable Energy Certificates)

Platinum
  • Project-specific renewable energy (wind + solar) with matching environmental attributes from new facilities

Certified:

A Renewable Energy Certificate (REC) is a tradeable, market-based instrument that represents the legal property rights to the non-power environmental attributes of renewable electricity generation.

Renewable Energy Certificates offered with load following conventional energy can be standard or Green-e certified.

  • Standard – Normal REC transactions usually consisting of a portfolio mix of national wind.

    (This is the least expensive way for a customer to be 100% renewable.)

  • Green-e Certified – Third-party certification through the Center for Resource Solutions to guaranty that RECs have only been retired once with no duplication.

    (Premium associated)

 

Silver:

  • Load following retail contract supplied with 100% renewable energy and associated environmental attributes from Shell’s portfolio of pre-existing renewable generation resources.

    (To meet non-specific sustainability claims)


Gold:

Load following retail contract supplied with 100% renewable energy and associated environmental attributes from location specific pre-existing renewable generation resources.

  • Project Specific: We offer customers the ability to point directly to regional assets for sustainability claims.

    (This is a bundled product consisting of energy plus environmental attributes from a specific project. This is geared toward very large customers with very specific sustainability claims.)

Normally structured as matching customer load shapes with solar energy during solar producing hours and wind energy for all other hours or any variation that Customers may desire.

 

Platinum:

This is a subset of the Gold product and works the same way except that it’s based on new renewable resources. New being defined as the project achieving commercial operation after retail contract execution.

This product is for customers seeking to support the development of new renewable resources for more impactful claims. This normally involves a longer-term commitment and bundled energy plus attributes.

Benefits Eligibility

Benefits

  • Ease of use: MP2 simplifies the process, removing the need for you to negotiate a power purchase agreement (PPA) with a renewables developer.

    Customer volume is shaped and can be matched with Off-Peak wind and On-Peak solar for better market alignment and grid support.

  • Stability: MP2 assumes the risk of future price fluctuations in energy costs and lets you avoid basis risk and the need for mark-to-market accounting.
  • Flexibility: If you already have a PPA in place, MP2 can structure a retail supply contract around that existing agreement
  • Sustainability: You gain the ability to market your environmental efforts by promoting your association with a specific renewable facility
  • Simplicity: Simplified contracting structure and purchasing option to meet renewable / sustainability goals and mandates.

    Load following retail contract that provides a single, predictable price per MWh. No complex derivative accounting required.

  • Specificity: Renewable energy and environmental attributes from a specific facility on their grid.
  • Velocity: Quicker timing than a PPA or VPPA. Can turn around inside of a week as opposed to months.
  • Additionality: Also supports new facility builds that can include “additionality” claims.

Eligibility

The program is intended for commercial enterprises requiring at least 10,000 megawatt hours annually. Contract terms are normally longer than 60 months, but we will consider shorter contracts if requested. Industrial customers with lower power needs should consider one of our other off-site commercial offerings.

 

Off-site Renewable Energy Product Structures

MP2’s Offsite Renewable Energy Products work with all retail supply structures inclusive of:

  • Fixed Price – Based on a fixed percentage of renewable energy from a renewable asset and shaped to match load profile
  • Index – A specific quantity of renewable energy equal to customer selected percentage of load. The balance of supply is settled at market.
  • Block and Index – A block of energy supply based on a fixed shape of expected renewable generation. Volumes above or below block are settled at market.

MP2 will purchase and retire all Renewable Energy Credits associated with the amount of renewable energy selected by the customer to meet sustainability goals. If project specific, customers can show a regional impact to their power grid.

MP2 can also incorporate a customer’s existing Power Purchase Agreement into a new retail power supply contract.

Virtual Power Purchase Agreement Risks vs. MP2's Offsite Solutions

VPPAs are complex financial agreements; MP2’s simplified retail solution meets clients’ sustainability mandates via a fixed-price, load following, renewable retail contract.

Wholesale VPPA

cons

  • Complex Wholesale Financial Transactions
  • Longer contract terms
  • Subject to regulatory and accounting treatments
  • Expose off-taker to wholesale commodity prices
  • Bear congestion risk (negative pricing); volumetric and shape risks (variable production does not match load)

Our Product

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  • Simplified retail contracting structure with flexible volume and tenor
  • Delivered to hub or load zone
  • Client’s load can be matched with off-peak wind and peak solar
  • Renewable energy and environmental attributed from a renewable source
  • Supports new facility that includes “additionality” claims

 

 

Get in touch

To hear how you can expand your customer base by becoming a solar, storage, or EV installer for MP2, contact us today.